Slide 1: Fiscal 2023 Fourth Quarter and Full-Year Results
Fiscal 2023 Fourth Quarter and Full-Year Results MARCH 19, 2024
Slide 2: Cautionary Statements
CAUTIONARY STATEMENTS Cautionary Note Regarding Forward-Looking Statements This presentation and accompanying discussion may include “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include, without limitation, all st
Slide 3: Today's Presenters
TODAY’S PRESENTERS Steve LeClair Mark Witkowski Robyn Bradbury Chairman & Chief Executive Officer Chief Financial Officer VP, Finance & Investor Relations © Core & Main All Rights Reserved. Confidential and Proprietary Information. 3
Slide 4: Business Update
Business Update STEVE LECLAIR
Slide 5: Core & Main Snapshot
CORE & MAIN SNAPSHOT Key Stats(1) Market Reach(1) $10.2B $6.7B $910M $1.1B ~335 ~5,000 48 60K+ ~5,000 200K+ Market Cap(2) Net Sales Adjusted EBITDA(3) Operating Cash Flow Branches Employees States Customers Suppliers SKUs Market Share Product Mix 8% Pipes, Valves, & 17% Fittings 10% Storm Drainage $
Slide 6: FY23 Accomplishments
FY23 ACCOMPLISHMENTS Strong Financial Performance ▪ Record net sales of over $6.7B ▪ Record operating cash flow of ~$1.1B ▪ Maintained pricing and margin discipline despite normalizing supply chains Investment in Long-Term Growth ▪ Opened 4 new locations in underserved markets ▪ Closed 10 acquisitio
Slide 7: Track Record of Strong Performance
TRACK RECORD OF STRONG PERFORMANCE Net Sales Adj. EBITDA & Adj. EBITDA Margin(1) Net Debt Leverage(2) +19% +32% CAGR CAGR 6.4x $6,651 $6,702 $935 $910 5.6x $5,004 $604 $3,642 $3,389 14.1% 13.6% 12.1% 2.5x $342 2.1x $298 9.4% 1.4x % Growth 6% 8% 37% 33% 1% 8.8% FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21
Slide 8: Financial Results
Financial Results MARK WITKOWSKI
Slide 9: Q4 2023 Financial Results
Q4 2023 FINANCIAL RESULTS ($ in Millions, Except Per Share Amounts) Net Sales Gross Profit $1,374 $1,440 $373 $384 $1,246 +5% +3% +10% $327 +14% % Margin 26.2% +90 bps 27.1% (40 bps) 26.7% Q4'21 Q4'22 Q4'23 Q4'21 Q4'22 Q4'23 Adjusted EBITDA(1) Diluted Earnings Per Share $0.31 $0.34 $164 $160 $0.28 +
Slide 10: FY23 Financial Results
FY23 FINANCIAL RESULTS ($ in Millions, Except Per Share Amounts) Net Sales Gross Profit $1,795 $1,818 $6,651 $6,702 +1% +1% $1,280 +40% $5,004 +33% % Margin 25.6% +140 bps 27.0% +10 bps 27.1% FY21 FY22 FY23 FY21 FY22 FY23 Adjusted EBITDA(1) Diluted Earnings Per Share $935 $910 (3%) $2.13 $2.15 $604
Slide 11: FY23 Cash Flow & Balance Sheet
FY23 CASH FLOW & BALANCE SHEET ($ in Millions) Operating Cash Flow Net Debt Leverage(3) 2.1x $367 ($179) 1.4x ($29) $1,069 $910 FY22 FY23 Uses of Capital Share Repurchases ($1,344) Acquisitions ($231) FY23 Working Taxes & Other Operating ~$1.6B Adjusted Capital Interest (2) Cash Flow Internal Invest
Slide 12: Fiscal 2024 Outlook
FISCAL 2024 OUTLOOK Metric Outlook Considerations ▪ End market demand expected to grow low single-digits in FY24 Net Sales $7,400M - $7,600M Y-o-Y % Growth +10% to +13% ▪ Expect to deliver 200 - 400 bps of above market growth from the execution of our product, customer and geographic expansion initi
Slide 13: Capital Allocation Framework
CAPITAL ALLOCATION FRAMEWORK Capital Allocation Framework Organic Growth & ▪ Expect future capital expenditures to average Operating Cash Flow Operational Initiatives ~0.5% – 0.6% of net sales Target ~60 –70% of Adjusted EBITDA ▪ Maintain a robust M&A pipeline and a disciplined Priority Uses M&A app
Slide 14: Appendix
cone UE Appendix
Slide 15: Product & Service Offering
PRODUCT & SERVICE OFFERING © Core & Main All Rights Reserved. Confidential and Proprietary Information. 15
Slide 16: Well-Positioned to Win Within Complex Industry
WELL-POSITIONED TO WIN WITHIN COMPLEX INDUSTRY Differentiated Industry Our Competitive Advantages ▪ Local regulation and specification needs; Highly Complex strong participation in governing / Industry Expertise Size & Unique Scalability Specification & regulating bodies Regulation Deep knowledge of
Slide 17: Multiple Initiatives to Drive Long-Term Growth
MULTIPLE INITIATIVES TO DRIVE LONG-TERM GROWTH Sales Initiatives Margin Initiatives Fire Storm Strategic Private Pricing Meters Protection Drainage Accounts Label Analytics Fusible HDPE Treatment Greenfield Sourcing Operational Geosynthetics Solutions Plant Expansion Optimization Excellence © Core &
Slide 18: Compounding Growth Through M&A
COMPOUNDING GROWTH THROUGH M&A ~$1.6B of Capital Deployed on 30+ Acquisitions Since 2017 Driving Sustainable Growth Through M&A… …Leveraging Our Disciplined Approach October 2017 June 2018 July 2018 August 2018 January 2019 February 2019 July 2019 ▪ Significant opportunity to fill existing geographi
Slide 19: Critical Investments from the Infrastructure Investment & Jobs Act
CRITICAL INVESTMENTS FROM THE INFRASTRUCTURE INVESTMENT & JOBS ACT $55B $50B $110B $25B to expand access to clean to protect against droughts, floods, to repair roads and bridges to create more modern, drinking water heat and wildfires, in addition to major and support major resilient and sustainabl
Slide 20: Reconciliation of Non-GAAP Measures
RECONCILIATION OF NON-GAAP MEASURES ($ in Millions) Adjusted EBITDA & Adjusted EBITDA Margin Three Months Ended Fiscal Years Ended January 28, 2024 January 29, 2023 January 30, 2022 January 28, 2024 January 29, 2023 January 30, 2022 January 31, 2021 February 2, 2020 Net income attributable to Core &
Slide 21: Reconciliation of Non-GAAP Measures
RECONCILIATION OF NON-GAAP MEASURES ($ in Millions) Net Debt Leverage Fiscal Years Ended January 28, 2024 January 29, 2023 January 30, 2022 January 31, 2021 February 2, 2020 Senior Term Loan due August 2024 $ - $ - $ - $ 1,261 $ 1,274 Senior Notes due September 2024 - - - 300 300 Senior Notes due Au